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Gartner Says Worldwide External Controller-Based Disk Storage Market Experiences Double-Digit Growth in 2005 |
STAMFORD, Conn., March 7, 2006 — Worldwide external controller-based (ECB) disk storage revenue totaled $14.7 billion in 2005, an 11.2 percent increase over 2004 revenue of $13.2 billion, according to Gartner, Inc.
IBM narrowed the gap between it and Hewlett-Packard for the number two position in 2005 (see Table 1). IBM's worldwide ECB market share increased to 14.5 percent, while HP's market share totaled 15.2 percent. EMC maintained the No. 1 spot in 2005, despite a slight decline in 2005 market share compared to 2004. Network Appliance moved past Sun Microsystems to become the No. 6 vendor, based on worldwide ECB revenue.
Dell experienced the strongest growth among the top-tier vendors, with 42.1 percent revenue growth in 2005 and 60.4 percent revenue in the fourth quarter of 2005. Dell's strong performance allowed it to move from the seventh position in worldwide revenue in 2004 to the fifth position in 2005.
Large vendors are controlling a larger portion of the industry. In 2005, the top 7 vendors accounted for 81.6 percent of worldwide ECB revenue, up from 77.8 percent of total sales in 2004. In the fourth quarter of 2005, the top 7 vendor's market share totaled 83.5 percent, up from 75.8 percent market share in the fourth quarter of 2004.
"The increase in market share among the top 7 vendors in 2005 is due in part to increased consolidation, strategic alliances, and partnerships," said Donna Taylor, principal analyst for Gartner's global Storage Quarterly Statistics program.
Hewlett Packard, fueled by a 13.7 percent revenue increase year-over-year in 2005, maintained the No. 2 position with an increase in market share in 2005. Strong growth in HP's EVA mid-range storage arrays, as well as in its high-end XP-series helped drive revenue numbers for HP's storage business in 2005.
Table 1
Worldwide External Controller-Based Disk Storage Vendor Revenue Estimates for 2005
(Millions of U.S. Dollars)
| Company |
2005 Revenue |
2005 Market Share (%) |
2004 Revenue |
2004 Market Share (%) |
2004 -2005 Change (%) |
| EMC * |
3,419.7 |
23.3 |
3,104.9 |
23.5 |
10.1 |
| Hewlett -Packard** |
2,227.4 |
15.2 |
1,958.2 |
14.9 |
13.7 |
| IBM |
2,118.6 |
14.5 |
1,663.3 |
12.6 |
27.4 |
| Hitachi/HDS*** |
1,353.0 |
9.2 |
1,184.5 |
9.0 |
14.2 |
| Dell |
1,112.4 |
7.6 |
782.8 |
5.9 |
42.1 |
| Network Appliance |
902.1 |
6.2 |
736.6 |
5.6 |
22.5 |
| Sun Microsystems |
825.3 |
5.6 |
832.0 |
6.3 |
-0.8 |
| Others |
2,698.7 |
18.4 |
2,923.7 |
22.2 |
-7.7 |
| Total |
14,657.2 |
100.0 |
13,186.0 |
100.0 |
11.2 |
Note* EMC revenue excludes OEM revenue from Dell and Fujitsu Siemens.
Note ** HP's 2005 market statistics reflect new, updated XP series revenue and EVA series revenue and unit guidance.
Note *** Hitachi/HDS revenue excludes OEM revenue from HP and Sun Microsystems.
Source: Gartner Dataquest (March 2006)
In the fourth quarter of 2005, some of the top-tier vendors had significant growth rates in revenue compared to the corresponding fourth quarter in 2004. Dell and IBM led the growth charge with overall increases in revenue of 60.4 percent and 49.7 percent respectively (see Table 2).
While Network Appliance did not match these increases, its 23.2 percent year-over-year quarterly growth, fueled by its FAS3000, resulted in the company moving ahead of Sun Microsystems as the No. 6 vendor in the fourth quarter of 2005.
Sun Microsystems experienced a revenue decline in 2005 year-over-year at -0.8 percent, while realizing a 9.1 percentage revenue growth in the fourth quarter. The company saw its revenue mix shift towards its midrange and data center arrays. Sun's acquisition of StorageTek in the third quarter of 2005 had a positive impact on revenue overall for the company in the latter part of the year, which softened its overall annual revenue decline.
Table 2
Worldwide External Controller-Based Disk Storage Vendor Revenue Estimates for 4Q05
(Millions of U.S. Dollars)
| Company |
4Q05 Revenue |
4Q05 Market Share (%) |
4Q04 Revenue |
4Q04 Market Share (%) |
4Q04 -4Q05 Change (%) |
| EMC * |
967.8 |
23.5 |
869.8 |
23.2 |
11.3 |
| IBM |
712.3 |
17.3 |
475.9 |
12.7 |
49.7 |
| Hewlett -Packard** |
574.9 |
14.0 |
567.8 |
15.1 |
1.3 |
| Dell |
363.9 |
8.8 |
226.8 |
6.0 |
60.4 |
| Hitachi/HDS*** |
354.9 |
8.6 |
308.5 |
8.2 |
15.0 |
| Network Appliance |
242.5 |
5.9 |
196.8 |
5.2 |
23.2 |
| Sun Microsystems |
222.3 |
5.4 |
203.9 |
5.4 |
9.1 |
| Others |
672.9 |
16.5 |
902.3 |
24.2 |
-25.4 |
| Total |
4,111.5 |
100.0 |
3,751.8 |
100.0 |
9.6 |
Note* EMC revenue excludes OEM revenue from Dell and Fujitsu Siemens.
Note ** HP's 2005 market statistics reflect new, updated XP series revenue and EVA series revenue and unit guidance.
Note *** Hitachi/HDS revenue excludes OEM revenue from HP and Sun Microsystems.
Source: Gartner Dataquest (March 2006)
"Unfavorable currency moves affected the industry, especially for those vendors that took advantage of the Foreign Earnings Repatriation Provision of the American Jobs Creation Act," Ms. Taylor said. "This Act established a temporary incentive for U.S. multinationals to repatriate income earned outside the U.S. at an effective tax rate substantially below the standard corporate tax rate."
Gartner external controller-based disk storage reports reflect hardware only revenue, as well as hardware revenue associated with financial leases and managed services. Optional storage software revenue and Storage Area Network (SAN) infrastructure components are excluded.
Additional information on the ECB disk storage market is available in the Gartner Dataquest report "Market Share: Disk Array Storage, All Regions, All Countries, 1Q05-4Q05". The report includes vendor market share by data access method, price band, channel and operating system segmentation. The report is available on Gartner's Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=489614.
Gartner analysts will provide more detailed analysis on the state of the storage industry at the Gartner Storage Summit 2006, at the Gaylord Palms Hotel and Convention Center in Kissimmee, Florida, June 12-15. Additional information on the Summit is available at www.gartner.com/us/storage.
CONTACT:
Tom McCall
Gartner
(408) 468-8312
tom.mccall@gartner.com.
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About Gartner:
Gartner, Inc. (NYSE: IT) delivers the technology-related insight necessary for its clients to make the right decisions, every day. Gartner serves 10,000 organizations, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company consists of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,700 associates, including 1,200 research analysts and consultants in 75 countries worldwide. For more information, visit www.gartner.com.
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